Caring for Your Team During an Acquisition

Selling a company is a moment of triumph for a founder, but it is a period of intense uncertainty and anxiety for employees. A founder's final act of leadership is to care for their team during this transition, even when they have limited control over the outcome.

The Founder's Responsibility:

• Acknowledge the Lack of Control: Once the deal closes, the new owner has full control. The founder cannot guarantee job security for their employees. It's important to be honest about this reality.
• Communicate with Transparency (When Possible): While the deal is in progress, it must be kept confidential to avoid panic. However, once the acquisition is announced, the founder should communicate as clearly as possible about the transition process.
• Provide a Soft Landing: If layoffs are expected, the founder can negotiate for or provide a generous severance package to bridge the gap for departing employees.
• Help Them Find New Roles: Actively leverage your network and reputation to help your team members find new jobs.
• Share the Financial Upside: If possible, find ways to share the proceeds of the sale with the team, beyond just their stock options. A discretionary bonus pool is a powerful way to show gratitude for their contribution to the company's success.

The way a founder handles an exit defines their legacy. Prioritizing the well-being of the team during this difficult period is a mark of true leadership and builds a reputation that will follow the founder into their future ventures.